Mario Gabelli

Mario Gabelli

Last Update: 2014-07-14

Number of Stocks: 839
Number of New Stocks: 52

Total Value: $18,526 Mil
Q/Q Turnover: 3%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mario Gabelli Watch

  • Mario Gabelli Buys Almost 5% Stake in Transforming Company

    Mario Gabelli (Trades, Portfolio) purchased a new 4.9% stake in HC2 Holdings Inc. (OTCPK:HCHC), a Virginia-headquartered holding company undergoing transformation. The transaction consisted of 685,978 shares of the company, which had a closing price that day of $3.99 per share, far from its 52-week high of $12.71 reached in August 2013.


    Until April 9, HC2 operated as PTGi Holding Inc., a wholesale service provider to fixed and mobile network operators globally. On May 13, the company announced it would sell its North American retail telecommunications operations in the U.S. and Canada to York Capital Management for $129 million, while continuing to manage its traditional telecom services with a focus on hosted phone, Ethernet, local and high-speed Internet. The board used proceeds from the sale to pay shareholders a special $8.50 per-share dividend, distributed Aug. 28, the date the stock price dropped dramatically.

      


  • Mario Gabelli Comments on Xylem Inc.

    Xylem Inc. (0.7%) (XYL)(XYL - $36.42 - NYSE) is a global leader in the design, manufacturing, and application of highly engineered technologies for the transportation, treatment, and testing of water. The company is expected to benefit from favorable long term fundamentals in the water industry, driven by scarcity, population growth, aging of the infrastructure, and the need to improve water quality. Further, with a large installed base of pumps and systems, the company is well positioned to increase aftermarket revenue, which currently represents roughly 40% of total revenues. Xylem's attractive business mix also generates strong cash flow, which is expected to support acquisitions, debt service, and dividend growth. Concerns regarding weakness in Europe and municipal spending levels in the U.S. remain, although we believe the long term fundamentals outweigh these concerns.

      


  • Mario Gabelli Comments on Vivendi SA

    Vivendi SA (0.5%) (XPAR:VIV)(VIV - €20.22 - EPA) is a French media and telecommunications holding company in the late stages of a decade long transition. In April 2014, the company announced it had reached an agreement to sell its French wireless operation, SFR, to French cable operator Numericable. Over the last year the company also sold most of its 62% stake in ActivisionBlizzard and reached an agreement to sell its entire 53% stake in Maroc Telecom SA. After closing the SFR sale in early 2015, Vivendi will be a more focused media firm consisting of Canal+ (a Francophone focused pay television network owner and distributor), Universal Music Group (UMG) (the number one recording music company and number two music publishing entity in the world) and GVT (a fast growing Brazilian broadband and pay television provider). We expect GVT to eventually be sold and would not dismiss the possibility of a breakup of Canal+ and UMG. While operating conditions have been challenging in most of Vivendi's businesses, it appears their trajectory is finally turning more positive and should be supported by a healthier balance sheet after the SFR, Activision and Maroc disposals.

      


  • Mario Gabelli Comments on UnitedHealth Group Inc.

    UnitedHealth Group Inc. (0.2%) (UNH)(UNH - $81.99 - NYSE) is the largest and most diverse health insurance company in the United States. UnitedHealth is actually much more than just an insurance company, with its Optum division providing $40 billion worth of technology, pharmacy benefits management, and other care services to its customers annually. The company has successfully navigated the changes required by the Affordable Care Act and is cautiously participating in the new insurance exchanges. UnitedHealth is also finding new growth internationally, especially in Brazil where the company serves almost 5 million people.

      


  • Mario Gabelli Comments on Twenty-First Century Fox Inc.

    Twenty-First Century Fox Inc. (1.9%; 0.2%) (FOXA)(FOXA - $31.97 - NASDAQ; FOX - $31.12 - NASDAQ) is a diversified media company, with operations in cable network television, television broadcasting, filmed entertainment, and direct broadcast satellite television. Cable networks account for 66% of the company's EBITDA and benefit from contractually recurring affiliate fees and exposure to the fast-growing global pay television market. We also expect the company to benefit from rising demand for premium content, driven by emerging distribution platforms such as Netflix, retransmission revenue, and aggressive share repurchases.

      


  • Mario Gabelli Comments on Time Warner Cable

    Time Warner Cable (0.3%) (TWC)(TWC - $137.18 - NYSE) is the second largest cable operator in the U.S., with 11 million subscribers located primarily in New York City, Los Angeles, the Carolinas and Midwest. The company was spun-off from Time Warner in March 2009. After several strong years of growth and shareholder returns, the company encountered customer service and competitive challenges in late 2012 which left it vulnerable to takeover. Indeed, Charter Communications (less than 0.05%), backed by Liberty Media (0.7%), attempted on several occasions to acquire the company in 2013. Finally in February 2014, Comcast (0.4%), the largest cable operator in the U.S., agreed to acquire TWC in an all stock transaction. While the proposed deal has been criticized in the press, we expect it to close with minimal conditions early in 2015.

      


  • Mario Gabelli Comments on Rolls-Royce Holding

    Rolls-Royce Holding plc (1.1%) (LSE:RR)(RR – GBX 1,074.00 - London Stock Exchange) provides jet engines, power and propulsion systems, and services to commercial aviation, defense, marine, oil and gas, and other industries. RR has leading engine positions as one of two suppliers on the Boeing 787 Dreamliner and the Airbus A350, two new wide body programs that will provide the company with significant long term growth opportunities. The delivery of new jet engines also provides recurring, higher margin parts and service revenues which will benefit the company. During year-end 2013 results, Rolls-Royce surprised investors with 2014 guidance that called for a marked falloff in defense revenues due to program completions and what it described as well publicized cuts by two of its major customers. Civil aerospace margins will also be slower to improve than most had expected. Notwithstanding near term headwinds, we believe RR over the next decade will see substantial growth in its civil aerospace operations, accompanied by improved margins approaching the levels of its peers. The company's modest debt levels provide balance sheet optionality for acquisitions or other investments. Currently RR is set to acquire Daimler's 50% interest in Rolls-Royce Power Systems at a contractually set price, which could be quite accretive to earnings.

      


  • Mario Gabelli Comments on Mandarin Oriental International Ltd.

    Mandarin Oriental International Ltd. (0.2%) (SGX:M04)(M04 - $1.74 - Singapore Exchange) is the holding company for Hong Kong based Mandarin Oriental Hotel Group (MOHG), which operates twenty-six deluxe hotels and resorts containing 7,466 rooms located in twenty countries. Mandarin Oriental International Ltd. is incorporated in Bermuda and listed on the Singapore exchange. Mandarin Oriental currently has eighteen hotels in its development pipeline, all of which are management contracts that allow the company to grow without significant growth capital experience related to real estate development. The management and incentive fees stream from management contracts is a high-margin, high multiple business that augments the company's growth profile. MOHG continues to be 74% owned by Hong Kong based conglomerate Jardine Strategic Ltd.

      


  • Mario Gabelli Comments on Genuine Parts Co.

    Genuine Parts Co. (1.3%) (GPC)(GPC - $86.85 - NYSE) is an Atlanta based distributor of automotive and industrial replacement parts, office products, and electrical and electronic components. We expect GPC's well known NAPA Auto Parts group to benefit as an aged vehicle population, which includes the highest percentage of off warranty vehicles in history, helps drive sales of automotive aftermarket products over the next several years. Additionally, economic indicators remain supportive of the company's industrial and electrical parts distribution businesses amid steady economic expansion. Finally, GPC's management has shown consistent dedication to shareholder value via share repurchases and dividend increases.

      


  • Mario Gabelli Comments on Diebold Inc.

    Diebold Inc. (0.3%) (DBD)(DBD - $39.89 - NYSE) is a global leader in the manufacture and servicing of ATM machines. It also provides security systems and services, primarily to the financial, commercial, government, and retail markets worldwide. In June 2013, Diebold appointed former Hewlett-Packard and Siemens executive Andy Mattes as its new CEO to lead a restructuring and turnaround of its operations. Andy, along with newly recruited leaders, has shown early signs of success, reducing the size of the workforce, freeing up working capital, and moving to standardize business practices globally to drive efficient operations. Returning margins to historical and peer levels should enable substantial upside for Diebold. At the same time, Diebold is positioning itself to benefit from a wave of global bank branch automation, whereby high-tech ATMs capable of handling advanced transactions replace tellers. Diebold is also focused on higher margin growth opportunities including the servicing of ATMs, a broader commercial security presence across verticals, and software as a service (SAAS). Altogether, we see Diebold as capable of doubling earnings over the next four years, while continuing to support a strong dividend.

      


  • Mario Gabelli Comments on Davide Campari-Milano SpA

    Davide Campari-Milano SpA (0.2%) (MIL:CPR)(CPR - €5.95 - Borsa Italiana Milan Stock Exchange) is a leading beverage company headquartered in Sesto San Giovanni, Italy. The Company was founded in 1860 and is today the sixth largest player worldwide in the premium spirits industry. The Company's portfolio consists of over 50 brands and spans spirits (the core business), wines, and soft drinks. The company owns many niche brands including Aperol, Appleton, Campari, Cinzano, SKYY Vodka, and Wild Turkey. Campari's growth strategy aims to combine organic growth through strong brand building with shareholder value enhancing acquisitions, focusing on strong, niche brands that will enhance the company's critical mass in key markets. In March, the company agreed to acquire Forty Creek Distillery, a leading producer of Canadian whisky.

      


  • Mario Gabelli Comments on Dana Holding Corp

    Dana Holding Corp. (DAN)(0.3%) (DAN - $23.27 - NYSE) is a Maumee, Ohio based supplier of axles, drivelines and thermal products for the automotive and trucking industries. Dana's new CEO, Roger Wood, has begun to emphasize the company's strong technological expertise in thermal management technology, including advanced battery cooling products for next generation vehicles. Additionally, the company is beginning to reap the benefits of efforts to improve customer pricing as well as internal manufacturing efficiencies, both of which are expected to improve margins amid robust demand in the company's core auto and trucking markets.

      


  • Mario Gabelli Comments on Chemtura Corp

    Chemtura Corp. (0.1%) (CHMT)(CHMT - $25.29 - NYSE) is a global developer, manufacturer, and marketer of engineered specialty chemicals. Its products are used as additives, ingredients, or intermediates, serving major industries such as agriculture, building & construction, energy, electrical & electronics, transportation, and general industrial. Since its emergence from Chapter 11 in November 2010, under the leadership of Craig Rogerson, the management team has focused on actively managing its portfolio via investments in three vertical markets (transportation, electronics & energy, and agriculture), while monetizing businesses with below target long term potential. The recent sale of Consumer Products generated $250M of net proceeds; the potential sale of AgroSolution (presently undervalued) should generate another $900M of net proceeds. We expect this cash to be used for debt reduction, share repurchases, investments in the remaining operations, and potential bolt-on acquisitions. As management aims to build a more focused business portfolio, the remaining operations, Industrial Performance Products (petroleum additives and urethanes) and Industrial Engineered Products (bromine & flame retardants and organometallics), are expected to grow revenues via innovations, share gain, and geographic expansion, while bottom line will benefit from internal actions. In addition, market demand for flame retardants used in electronics and insulation foam applications should improve. We estimate that the "New Chemtura" (exclusive of Consumer and Ag) will generate EPS of $1.50 and $1.80 in 2015 and 2016, respectively. The EPS calculation is based on a declining number of shares: it assumes that proceeds from the sale of Consumer Products and estimated proceeds from the potential sale of AgroSolution will be mostly used for share repurchases. Management should announce its decision regarding whether it will sell or keep AgroSolution by the end of the second quarter; the decision will depend on the valuation given to the operations by the interested party/ies.

      


  • Mario Gabelli Comments on Beam Inc.

    Beam Inc. (0.9%) (BEAM)(BEAM - $83.30 – NYSE), headquartered in Deerfield, Illinois, is a leading producer of distilled spirits with brands including Jim Beam, Sauza, Maker's Mark, Courvoisier, Pinnacle, Cruzan, Knob Creek, Skinnygirl, and Effen. Beam competes in the ~$500 billion global spirits industry and is the leader in the $7 billion bourbon whiskey category, which is currently the fastest growing market segment in the U.S. Beam has strong brands, pricing power, top and bottom line momentum, and is one of the only companies in the industry without a family that owns a controlling stake in the business. As such, we have long considered Beam a compelling acquisition candidate for strategic acquirers. On January 13, 2014, Beam announced that it agreed to be acquired by privately held beverage producer Suntory Holdings of Japan for $83.50 per share in cash. The acquisition is expected to close in the second quarter of 2014.

      


  • Mario Gabelli Comments on AMETEK Inc.

    AMETEK Inc. (1.7% of net assets as of March 31, 2014) (AME)(AME - $51.49 - NYSE) is a leading global manufacturer of analytical instruments for the process, aerospace, and industrial markets, and a leading producer of electric motors and blowers for the floor care and outdoor power equipment markets. In the near term, the company continues to experience significant growth in its longer cycle businesses in the aerospace, power generation, and process industries. Longer term, the company continues to make acquisitions to augment growth. In the Electronic Instruments Group, AMETEK expects one half to two thirds of its revenue growth to come from acquisitions. The company is focused on acquiring differentiated businesses with revenues of $30-$100 million. Differentiated businesses compete on the basis of product capability, have higher growth rates, and offer superior returns. In the Electromechanical Group, AMETEK's key strategy is to reduce costs by increasing efficiency and moving noncore operations to low cost countries such as Mexico, the Czech Republic, and China.

      


  • Gabelli Asset Fund First Quarter 2014 Shareholder Commentary

    To Our Shareholders,


    For the quarter ended March 31, 2014, the net asset value ("NAV") per Class AAA Share of The Gabelli Asset Fund increased 0.9% compared with an increase of 1.8% for the Standard & Poor's ("S&P") 500 Index. See page 2 for additional performance information.

      


  • GuruFocus Real Time Picks of the Week

    The following information is a highlight of the real-time guru activity we saw this week. To view more information on these gurus, check out their guru portfolios. The “Real Time Picks” reports the stock purchases and sells that Gurus have made within the prior two weeks. If a Guru makes a purchase or sell of a company in which they own a greater-than 5% stake, SEC regulations require them to report their transaction within two days. This week we saw notable increases and buys in Real Time activity from Mario Gabelli (Trades, Portfolio) and Larry Robbins (Trades, Portfolio).


    Mario Gabelli (Trades, Portfolio)

      


  • Mario Gabelli Explains Why He Likes Two Specific Stocks - Kinnevik and Natural Fuel Gas

    Mario Gabelli lays out his thesis on Kinnevik and Natural Fuel Gas.


    He views Kinnevik as a great way to play growth in Africa and Latin America.

      


  • Mario Gabelli Comments on Hillshire Deal



  • Morning Coffee: Real-Time Picks and Insider Buys

    This morning we are going to take a look at recent Real-Time Picks from the gurus and large insider buys from the CEOs.


    Real-Time Picks:

      


Add Notes, Comments or Ask Questions

User Comments

Jaumepared
ReplyJaumepared - 2 weeks ago
I am curious how Gabelli small cap picks do in general. Anybody have any feedback?
JEANRSMITH1@GMAIL.COM
ReplyJEANRSMITH1@GMAIL.COM - 1 month ago
Kennethmall,
How is a company rated?
JEANRSMITH1@GMAIL.COM
ReplyJEANRSMITH1@GMAIL.COM - 1 month ago
What is your opinion of Markel?Is this stock overpriced?
Tomser
ReplyTomser - 7 months ago
what kind of tools he use to pick wining stcks



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